Discover why middle-office roles are most vulnerable in new age of AI

HSBC, the world’s largest banking institution, is currently evaluating a strategic plan to eliminate up to 20,000 positions as it pivot towards an artificial intelligence-driven operational model.

According to reports from Bloomberg, the potential redundancies could affect approximately one in ten of the bank’s 210,000 global employees.

The shift is particularly focused on personnel within middle- and back-office functions, where the bank increasingly depends on AI to execute standard tasks involving vast amounts of data processing across its compliance and support departments.

The institution has already demonstrated a commitment to using technology for improved performance through process optimisation and a strategic departure from specific markets.

While the implementation of artificial intelligence technology will decrease physical tasks by transforming employee requirements, these discussions remain in their initial stages.

If the proposal is approved, the changes are set to be implemented over the next three to five years. Although some roles may be directly affected by AI, others may be made redundant through broader divestments and consolidations.

Industry analysts estimate that up to 200,000 jobs across the global banking sector may be lost in the coming years as innovation becomes widespread. While customer-facing and advisory roles are likely to be less impacted, operational and support staff remain at a higher risk of displacement.

Notably, HSBC has not yet issued a public comment regarding these reported plans. The transition highlights a broader trend of traditional banking roles being superseded by high-speed digital efficiency.